Dentsu Group Inc. (DNTUY) Q2 2026 Earnings Call Transcript

Takeshi Sano
Representative Executive Officer, President, Director & Global CEO

Good morning, and good afternoon. This is Takeshi speaking. Thank you for joining Dentsu’s Fiscal Year 2026 Second Quarter Earnings Call. Today, Shigeki, our Global CFO, and I will be giving the presentation. I will begin with a business and strategic update, followed by an overview of our consolidated financial results by Shigeki. Then I will provide an update on our midterm management plan before opening the floor for Q&A. Please refer to our English website for today’s materials.

I will explain our performance for the 3 months of the second quarter. As we anticipated in February, consolidated organic growth was broadly flat, while operating margin was 11.9%, slightly above expectations.

By region, Japan exceeded expectations, delivering strong organic growth of 5.4%, making its 13th consecutive quarter of solid growth. Notably, net revenue reached a record high. Americas was slightly below expectations with an organic decline of 6.9%. Creative continued to be significantly affected by client loss in the previous year. However, with SG&A expense control in place, operating margin was as expected.

EMEA was in line with expectations, recording flat organic growth, while Media maintained positive growth.

Operating margin improved year-on-year to 13.2%. APAC was also in line with expectations. The second quarter’s organic growth improved to broadly flat from an organic